Spend on experiences and not things
When you experience something, it actually happens in the mind and not in the wallet?
As we go about our day-to-day activities, we buy a lot of things. It's not uncommon to buy a cup of coffee in the morning or maybe some groceries in the evening. However, it's important to understand that the things we buy don't actually do anything: there is no physical activity happening. We're not eating the cup of coffee, or cooking the groceries. We're simply experiencing their taste and aroma. It's the same with all the things we buy. The only thing that happens is that we experience them. And that's really all that ever happens.
For most, wealth is a measure of the money you have in your bank account. But, is this true? Money can be burned, stolen, or spent, making it a temporary item. (If you have ever lost money, you know this.) Real estate, on the other hand, can be sold, but it can also be lost through foreclosure. That is why experts recommend focusing on building wealth in a different way. They recommend thinking of wealth as an idea that can be passed on to your heirs. (If you have ever thought about whom you want to leave your money to, you are on the right track.)
Experiences allow us to connect to the world in an immediate way
To many people, the word “experiences” conjures up images of theme parks, safaris, concerts, and other tourist destinations. However, experiences can happen anywhere. In fact, arguably the most important experiences can happen in our own backyards and involve family and friends.
Experiences last much longer than things
Even after you've had that shiny new car for a year or that top-of-the-line MacBook for 6 months, you'll probably still remember how it felt to drive it off the lot or unbox it. The enjoyment you got from the act of acquiring it is something that's pretty hard to beat, especially when you consider the rapid depreciation that kicks in after landing in your driveway. Now, this isn't to say that you should spend all of your disposable income on things you'll never use. Instead, it's important to be aware that what's gone is gone forever. If you don't value the experience of earning it, why not take a step back and consider the memories that will last longer.
You can learn a lot from other people's experiences
You can learn a lot from other people's experiences; it's the reason why we write about our travels, talk about our work, and share our tips and tricks with one another. Whether you're looking for advice about starting a business or improving your health, you can save yourself a lot of time by learning from those who are doing it right. There's no reason for reinventing the wheel; there are experts out there who've already done what you want to do, and if you really want to get ahead, you should listen to them.
The bottom line
If you want to lead a happy life, it is suggested by prominent researchers shift some of your consumption away from material goods and a bit more toward experiences, which lead to greater well being.